Premier Foods’s strategy ‘is paying off’, claims boss
Group sales rose by 1.9% in the 13 weeks to July 2 2016. Branded sales were up by 0.8%, according to its first quarter trading statement published this morning (July 21).
Grocery Division sales climbed by 1.9%, while sales in Sweet Treats rose by 2%.
Ceo Darby said: “We are very pleased by the further improvement in our sales performance, which demonstrates four consecutive quarters of growth and continued momentum in the business.”
Investing in brands
The manufacturer’s category strategy of investing in brands continued to deliver results, despite the deflationary grocery market in the UK, he added.
“While the economic environment is more uncertain following the EU referendum outcome, our immediate financial exposure is expected to be limited.
“Given our strong brands and UK manufacturing cost base, we believe we remain well placed to make progress and our expectations for the full year remain unchanged.”
‘More exciting initiatives to come’
The Premier Foods boss added that the focus on innovation and brand investment was delivering demonstrable results, with “more exciting initiatives to come”.
After delivering four successive quarters of sales growth, the manufacturer predicted further progress. Expectations for the firm’s sales, profit and net debt for the year remained unchanged.
Premier Foods’s first quarter results – at a glance
- Total Sales: up 1.9%
- Branded: up 0.8%
- Non-branded: up 9.8%
- Grocery Division sales: up 1.9%
- Sweet Treats sales: up 2%